How to loosen the mortgage noose
This article from the AFR talks about most people underestimate how much interest they end up paying when they sign up for a 30 or even 25 year mortgage.
I will not get a mortgage, not even a small one. I would rather invest in bank shares and rake in massive dividends.
The main reason why I am anti-mortgage is because I believe the modern long-term mortgage is simply a more evolved form of slavery. When you take out a mortgage, you will sign a contract so long and convoluted that you will not read it, and the terms of the contract will be in the bank's favour. If nothing goes wrong, you slave away at your job for the next three decades, living in fear of being fired and sucking up to the boss. If things go wrong, you lose your job and the bank will quickly sell your home, which can result in massive capital losses for you. Unlike in America, Australian banks can pursue you for your debts no matter what. You cannot walk away from your debts.
My recommendation is, while you are young, to live with your parents or rent and share with many people to divide the costs. Then save aggressively and buy two cheap homes in the country, one that you leave empty and the other that you rent out to produce rental income. If things go wrong in your life, you have the security of knowing you can drive into the country, live in a house, and have another house producing income to feed you.
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